EUR/USD consolidates below 1.0900, will the bears join in?
Hello, this is my idea about EURUSD, let's discuss it together.
In general, EURUSD has experienced a significant decline yesterday, surpassing the support level of 1.0915-1.0902. At the moment, the price is testing back at 1.0886, after reaching 1.0872, marking a 0.04% increase for the day. So, what are the reasons and factors pushing this currency pair down?
Regarding the impacting factors: The initial unemployment claims came in lower than expected and the increase - although not as much as predicted - in retail sales by 0.6% compared to the previously adjusted decrease of 1.1%, data shows that the US economy is still stronger than anticipated.
Conclusion: This could mean that the Fed will have to maintain higher interest rates for a longer period of time. This is negative for EUR/USD but positive for the US Dollar (USD) as higher interest rates attract more foreign capital inflows.
Regarding the new prospects for EURUSD: From the 4-hour chart, EURUSD is currently being negatively influenced by the broken support level. Based on the fundamental technical factor of EMA 34,89, we can argue that the fundamental foundation is negative. And if the price moves below the resistance level of 1.0915, it may further decrease.
There is expected to be a breakout from the channel, after retesting the resistance level !
In general, EURUSD has experienced a significant decline yesterday, surpassing the support level of 1.0915-1.0902. At the moment, the price is testing back at 1.0886, after reaching 1.0872, marking a 0.04% increase for the day. So, what are the reasons and factors pushing this currency pair down?
Regarding the impacting factors: The initial unemployment claims came in lower than expected and the increase - although not as much as predicted - in retail sales by 0.6% compared to the previously adjusted decrease of 1.1%, data shows that the US economy is still stronger than anticipated.
Conclusion: This could mean that the Fed will have to maintain higher interest rates for a longer period of time. This is negative for EUR/USD but positive for the US Dollar (USD) as higher interest rates attract more foreign capital inflows.
Regarding the new prospects for EURUSD: From the 4-hour chart, EURUSD is currently being negatively influenced by the broken support level. Based on the fundamental technical factor of EMA 34,89, we can argue that the fundamental foundation is negative. And if the price moves below the resistance level of 1.0915, it may further decrease.
There is expected to be a breakout from the channel, after retesting the resistance level !
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Trade active:
The cautious market mood ahead of the weekend helps the US Dollar stay resilient against its rivals and doesn't allow the pair to gain traction.
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Related Ideas
- From the 1D chart, we can argue that the fundamentals are negative favorable for further bearish price movement. EUR/USD Consolidation below 1.08975 and a breakout of 1.0880 sets the stage for further declines.